Zodia Custody can now provide custody of digital securities in ADGM after the Financial Services Regulatory Authority (FSRA) expanded its subsidiary’s permission.

The firm will initially focus on tokenised money markets as it moves into tokenised versions of traditional securities.

The FSRA approved a Variation of Permission for Tungsten Custody Solutions Limited, Zodia Custody’s regional subsidiary.

As a result, Tungsten’s existing Financial Services Permission now includes the custody of digital securities.

“We are seeing increased interest in bringing more of the traditional equities and fixed income assets onchain,and with tokenised RWA growth expected to reach $16T by 2030,

we believe we are well positioned to support the custody  and settlement of digital and traditional assets with our partners in the region,”

said Phil Langton, Senior Executive Officer at Tungsten Custody Solutions.

“This approval means we can offer bank-grade custody for tokenised securities as well as tokenised commodities in ADGM, and we expect demand for both to grow across the region,”

said Richard Clark, CEO at Zodia Custody.

According to the company, tokenised equities are forecast to reach US$750 billion by the end of 2028.

As banks and asset managers bring more listed shares and other traditional securities onchain, they will need a regulated custodian authorised to hold them.

This approval widens the range of assets Zodia Custody can hold for clients in ADGM.

Furthermore, it adds to the permissions and registrations that Zodia Custody entities hold across Europe, the Middle East and Asia-Pacific.

Featured image: Edited by Fintech News UAE, based on image by Frolopiaton Palm via Magnific.